Updated Thresholds for Micro-Business Tax Regimes 2025
As part of the 2023 Finance Act, several key thresholds for small business tax regimes have been revised upward for the years 2023, 2024, and 2025. These changes apply to the micro-entrepreneur tax regime, VAT exemption limits, the simplified real taxation regime, and the simplified VAT system. These new thresholds have been in effect since January 1, 2023.
Alignment with Income Tax Bracket Adjustments
The revised thresholds follow the same proportional increase as the first income tax bracket adjustment introduced by the 2023 budget law.
New Turnover Limits for the Micro-Business Regime
To qualify for the micro-entrepreneur regime, a business must not exceed specific annual turnover limits, excluding tax (CAHT).
Micro-entrepreneur turnover thresholds:
| Business Activity | 2022 Threshold | 2023–2025 Thresholds |
|---|---|---|
| Sale of goods / accommodation services | €176,200 | €188,700 |
| Service provision / freelance professions | €72,600 | €77,700 |
Note: If your business exceeds these thresholds, you will need to move to a different tax regime.
Revised VAT Exemption Thresholds
Businesses with turnover below certain thresholds are exempt from both declaring and paying VAT on their goods and services. These thresholds have now been updated.
VAT exemption eligibility thresholds:
| Activity | 2022 Threshold | 2023–2025 Thresholds |
|---|---|---|
| Sale of goods / accommodation services | €85,800 | €91,900 |
| Service provision | €34,400 | €36,800 |
| Lawyers, authors, performing artists | €44,500 | €47,600 |
| Other liberal professions | €34,400 | €36,800 |
| Other artist-author activities | €18,300 | €19,600 |
Adjusted Upper Limits for Maintaining VAT Exemption
Even if the VAT exemption threshold is exceeded during a year, the exemption can be retained if the turnover does not surpass a secondary, higher limit—these limits have also been raised.
VAT exemption continuation limits:
| Activity | 2022 Limit | 2023–2025 Limits |
|---|---|---|
| Sale of goods / accommodation services | €94,300 | €101,000 |
| Service provision | €36,500 | €39,100 |
| Lawyers, authors, performing artists | €54,700 | €58,600 |
| Other liberal professions | €36,500 | €39,100 |
| Other artist-author activities | €22,100 | €23,700 |
New Limits for the Simplified Real Tax and VAT Regimes
The simplified real taxation regime applies to businesses that either exceed the micro-entrepreneur thresholds or voluntarily opt for it. Companies under this regime can also qualify for the simplified VAT scheme, provided their turnover stays within defined limits.
Simplified real tax regime turnover brackets:
| Business Activity | 2022 Range | 2023–2025 Range |
|---|---|---|
| Sale of goods / accommodation services | €176,200 – €818,000 | €188,700 – €840,000 |
| Service provision / professional activities | €72,600 – €247,000 | €77,700 – €254,000 |
Simplified VAT scheme turnover brackets:
| Business Activity | 2022 Range | 2023–2025 Range |
|---|---|---|
| Sale of goods / accommodation services | €85,800 – €818,000 | €91,900 – €840,000 |
| Service provision / professional activities | €34,400 – €247,000 | €36,800 – €254,000 |
Reminder: For a business to qualify for the simplified VAT system, the annual VAT due must remain under €15,000.
